TuTh 11:15am-12:30pm
Why do we have markets? Why do we have governments? Is free trade
beneficial to our economy? These questions exemplify the types of
fundamental problems faced by modern societies. This course examines
these questions from the perspective of economic incentives,
building a theoretical foundation in economic though.
Emphasis is placed on: (1) developing models of how consumers and
firms make decisions, (2) understanding how markets work, (3)
showing how market activities can lead to gains for society, and (4)
discussing government solutions to situations in which there are
market failures.
Course materials and objectives are developed utilizing economic
models and through participation in interactive decision making
exercises, designed to help the student understand the relationship
between "behavioral models" and "behavior".
The small class size allows for active classroom discussions.
The course is organized around 10 topical areas.
I. Economics as a Study of Allocating Scarce Resources
II. Markets: The Case of Perfect Competition: S&D
III. Elasticity as a Measurement of Degree of Response
IV. Markets in Action: Applications of S&D and ED& ES
V. Utility and Demand
VI. Output and Costs
VII. Profit Maximization: The General Problem
VIII. Perfect Competition
IX. Monopoly and Other Industry Structures